The Expected Value of a Random Variable Is

question 52

Multiple Choice

The expected value of a random variable is

• A) the value of the random variable that should be observed on the next repeat of the experiment.
• B) the value of the random variable that occurs most frequently.
• C) the square root of the variance.
• D) None of these alternatives is correct.

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Definitions:

Shut Down

A short-term decision by a firm to cease operations when variable costs exceed revenues, typically in a perfect competition scenario.

Short Run

A time period in economics during which at least one factor of production is fixed, limiting the ability of the economy or firm to fully adjust.

Long Run

A period in which all factors of production and costs are variable, allowing full adjustment to any change.

Shut Down

In economics, a short-run decision not to produce anything during a specific period because of current market conditions.